EU Ship Recycling on the Radar

UNITED KINGDOM July 16 2016 12:03 PM     

LONDON (Scrap Register): The European Union Ship Recycling  Regulation has been effective since 2013 and applies to all ships entering ports  and terminals of EU Member States.

While it is consistent with the broad  objectives established in the International Maritime Organisation’s Hong Kong  Convention (the Hong Kong Convention) on the safe and environmentally sound  recycling of ships, the Hong Kong Convention is not yet in force.

The  Regulation makes provision for the EU to introduce a financial mechanism, which  is intended to encourage the use of ship recycling facilities in the EU, or  facilities outside the EU providing they have been EU approved.

The  process for approving facilities outside the EU is currently ongoing. In late  2015, consultants appointed by the European Commission proposed several options  including an insurance-based solution that could be used to finance a fund which  would be established to supportEU recycling.

The proposals were complex  and proved to be flawed. The Group engaged in correspondence and discussions  with the appointed consultants, explaining that insurance-related options are  unworkable and inappropriate in the context of end-of-life ship  recycling.

Subsequent to this engagement, the insurance-based proposals  have been shelved. Instead, however, it appears that the EU may seek to apply a  levy or fund at some later stage.

Discussions are ongoing and the Group  will continue to monitor and engage in the European process in the  future.

Source: Marinelink